That is extreme but it is all over.
My library has really had a tight budget for books the last few years. We finally got a new pile of story books. None were LGBTQ+ specifically, but every fricking one was about "equality" or acceptance. Not a real story among them. The illustrations were colourful and done with ability, but were like a sort of representation checklist on every page.
The publishing houses see these purchasing librarians coming, they just think "oh, we need books on quality, let's blow our budget on these, because we don't think children really need to have real stories."
I sometimes wonder if someone like Sendak or Steig would even get published now.